Lytix Biopharma AS' (OB:LYTIX) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Lytix Biopharma's Annual General Meeting to take place on 29th of April
• CEO Oystein Rekdal's total compensation includes salary of kr2.97m
• The overall pay is comparable to the industry average
• Lytix Biopharma's three-year loss to shareholders was 52% while its EPS was down 12% over the past three years

We've discovered 4 warning signs about Lytix Biopharma. View them for free.

The underwhelming share price performance of Lytix Biopharma AS (OB:LYTIX) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 29th of April and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Check out our latest analysis for Lytix Biopharma

How Does Total Compensation For Oystein Rekdal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Lytix Biopharma AS has a market capitalization of kr341m, and reported total annual CEO compensation of kr3.6m for the year to December 2024. We note that's a decrease of 24% compared to last year. We note that the salary portion, which stands at kr2.97m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Norwegian Biotechs industry with market capitalizations below kr2.1b, we found that the median total CEO compensation was kr2.8m. From this we gather that Oystein Rekdal is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Lytix Biopharma is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Lytix Biopharma AS' Growth Numbers

Over the last three years, Lytix Biopharma AS has shrunk its earnings per share by 12% per year. It achieved revenue growth of 179% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Lytix Biopharma AS Been A Good Investment?

With a total shareholder return of -52% over three years, Lytix Biopharma AS shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Lytix Biopharma you should be aware of, and 2 of them don't sit too well with us.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.